Sony Corporation has announced that it is to exit the PC business by selling off its laptop and desktop division, as well as reform its TV arm into a dedicated subsidiary company.
An official statement from the company stated that “Sony Corporation today announced significant new measures to address reform of its PC and TV businesses aimed at accelerating the revitalization and growth of its electronics business,”
Sony’s computer division, best known for its Vaio range, such as the Vaio Fit Multi-Flip 14A, has been struggling as the global market for new PCs slumps amid increased interest in smartphones and tablets. The company only had one new laptop on show at this year’s CES show, the VAIO Fit Multi-Flip 11, Sony had earlier dodged the question when issuing a statement regarding its intent with the PC division, but has now formally announced the acquisition of its entire laptop and desktop PC business unit by investment group, Japan Industrial Partners (JIP)
As a result, Sony will lay off 5,000 employees over the next year , including 1,500 in Japan and 3,500 overseas. Sony was projecting a fiscal year net profit of 30 billion yen converting to $295 million, a figure already adjusted down from previous forecasts.
Following the restructuring, Sony expects to post a fiscal year net loss of 110 billion yen, converting to $1.08 billion. With Sony no longer having any part of the PC market. Japan Industrial Partners, meanwhile, will complete its acquisition of the division by March 2014. Sony has confirmed that it will continue to offer warranty support to its customers for as long as their warranties remain valid.
In addition to the sale of its PC arm, Sony announced that its TV division is to be spun out into a dedicated company. While it makes a range of popular devices, including the KD-65X9005a which is still stands as the best 4K TV, Sony’s TV arm has again been making significant losses in recent years. The company has seen these losses slowing, and now predicts that the newly independent company will become profitable by the end of next year.
Sony will continue to produce games consoles and audiovisual equipment, which have proven some of its greatest sellers over the last few years, spurred on by the early success of the PS4.